Advanced Drainage Systems Inc (WMS)
Working capital turnover
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,881,170 | 3,071,540 | 2,768,550 | 1,976,670 | 1,633,150 |
| Total current assets | US$ in thousands | 1,299,970 | 1,017,490 | 871,898 | 742,978 | 666,211 |
| Total current liabilities | US$ in thousands | 439,622 | 378,802 | 391,241 | 318,270 | 238,213 |
| Working capital turnover | 3.35 | 4.81 | 5.76 | 4.65 | 3.82 |
March 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $2,881,170K ÷ ($1,299,970K – $439,622K)
= 3.35
The working capital turnover ratio for Advanced Drainage Systems Inc has fluctuated over the past five years. The ratio was highest in March 2022 at 5.76, indicating that the company generated $5.76 in revenue for every $1 of working capital invested during that period. This suggests efficient utilization of working capital to generate sales.
In March 2023 and March 2021, the working capital turnover ratio was 4.81 and 4.65 respectively, also indicating a relatively effective management of working capital in these years.
However, there was a slight decrease in efficiency in March 2024 with a working capital turnover ratio of 3.35, which may suggest a lower level of sales generated per unit of working capital. Similarly, in March 2020, the ratio was 3.82, indicating a similar trend.
Overall, the company has shown varying levels of efficiency in utilizing its working capital to generate sales over the past five years, with the most efficient performance observed in March 2022.